Services for children and youth in foster care are often contracted by public agencies to private social service entities. One way to encourage quality services and promote improved outcomes for children is to implement performance-based contracts (PBCs) within this public–private partnership, and then use data through quality assurance systems to drive practice change. Three demonstration sites (Florida, Missouri, and Illinois) employed a collaborative approach to planning and implementing PBCs in foster care case management or residential youth services. A cross-site evaluation of these three sites produced qualitative and quantitative results that demonstrated how an inclusive and outcome-oriented process can facilitate improved performance and outcomes for children and agencies.